social ties and earnings management

  • Hwang B
  • Kim S
  • Barton J
 et al. 
  • 2


    Mendeley users who have this article in their library.
  • N/A


    Citations of this article.


We detect a significant presence of social ties between the CEO and audit committee mem-bers and our results suggest that these informal ties play a material role in audit-committee oversight. In particular, we find a substantially stronger, positive relation between abnormal (i.e., discretionary) accruals and the extent of an audit committee's connection to the CEO when we consider social ties in addition to the conventional ties. Moreover, we find that an audit committee's social affiliation is associated with an increased discontinuity in the earnings distribution surrounding earnings targets. Together, our findings suggest that informal ties play a material role in facilitating creative accounting practices.

Author-supplied keywords

  • Audit Committee
  • Earnings Management *
  • G3 Keywords
  • JEL Classification
  • M4
  • Social Ties

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

There are no full text links


  • Byoung-Hyoun Hwang

  • Seoyoung Kim

  • Jan Barton

  • David Denis

  • Lauren Cohen

  • Steven J Kachelmeier

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free